The 7th Street Shop is having a contest to bring attention to its stor
QUESTION
The 7th Street Shop is having a contest to bring attention to its store. It is offering a $2,000 grand prize to one lucky winner. $500 will be paid on the day of the drawing. The remaining $1,500 will be paid in three annual payments of $500 each, starting one year after the drawing. How much is thi
So 500 is paid at day 0 you will receive 500 in 1 year with 7% rate of return so thats = (500/(1.07)^1) then another 500 in 2 years so thats = (500/(1.07)^2) finally
the last too in years so thats = (500/(1.07)^3) Add all four of those numbers up and you should get $1,812.16
ANSWER:
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.